Hello I know this is too many questions, I'll give you a like and a great comment. Thank you very much. Course: ECO 3553

Assume a world with two goods: good x and a currency m. There are 1000 identical consumers in this economy, each with an income of y and all with the following preferences:

U_i(x_i;m_i) = 500x_i -18x_i²+ m_i

Suppose that the price of good x is p and the price of cash m is 1.

(a) What is the Walrasian demand, x_i(p, y), of a consumer i? Assume a solution (i.e. the one given by the first-order conditions). b) Explain in words in which cases we would not have an interior solution? c) What would be the quantity of good x consumed in such a case? d) What is the market demand, X^d(p) for good x?

Now suppose that good x ext is produced by a sector with firms that all have identical technology. The cost function of each of these firms is:

c(q_j) = 12q_j

First, let us assume that the sector is composed of firms in pure and perfect competition and perfect competition.

e) What is the equilibrium price in the market? f) What is the total quantity produced and consumed? Now suppose that the market consists of only one firm that behaves as a monopolist. g) What is the price charged by this firm? h) What is the total quantity produced and consumed? Now suppose that the market is composed of only 13 firms that compete with each other in a Cournot fashion. i) What is the price charged by these firms? j) What is the total quantity produced and consumed?